Abstract
In this article we look at data on management and skills demand of firms in existing databases and we highlight the strong positive relationship between both variables. We develop a model that explains this relationship and calibrate it in order to present quantitative results, which we then compare with our own estimates. We discover that a simple model with management as a technology can replicate well the estimated influence of management in the skills that firms require. We also present evidence of the influence of the sub-items of management on skill requirements and found that aside from the talent component of management, target and performance components greatly influence the demand for skills.
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